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Going Public Abroad

Dec. 1, 2014

Cecilia Caglio, Kathleen Weiss Hanley and Jennifer Marietta-Westberg


This paper examines  the decision to go public abroad using a sample of 17,808 IPOs. Although only  6% of initial public offerings are offered abroad, these represent  approximately 25% of total IPO proceeds. We find that alleviating informational  frictions in order to obtain greater offering proceeds is an important  determinant of the decision to go public abroad. Foreign and global IPOs  originate from countries with significantly fewer recent IPOs in the same  industry, less developed capital markets, and lower disclosure standards.  Contrary to assumptions in prior research, we also show that the determinants  of whether to go public abroad or to go public at home and cross-list later are  not similar. In addition, we find that the preferences for going public in  certain foreign markets have changed over time and the factors that impact the  choice of listing market are not consistent across all countries.


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